NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
6
INCOME TAX IN THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS
(a) Taxation in the consolidated statement of profit or loss represents:
2014
2013
HK$'000
HK$'000
Current tax
Hong Kong Profits Tax
Provision for the year
161,500
19,920
Under/(over)-provision in respect of prior years
11,735
(221)
173,235
19,699
Deferred tax
Origination and reversal of temporary differences
19,503
61
192,738
19,760
The provision for Hong Kong Profits Tax for 2014 is calculated at 16.5% (2013: 16.5%) of the estimated assessable profits for the year, taking into account a reduction granted by the Government of Hong Kong Special Administrative Region of 75% of the tax payable for the year of assessment 2013-14 subject to a maximum reduction of HK$10,000 for each business (2013: the same statutory concession was granted for the year of assessment 2012-13 and was taken into account in calculating the provision for 2013).
(b)
Reconciliation between tax expense and accounting profit at an applicable tax rate:
2014
2013
HK$'000
HK$'000
Profit before taxation
1,224,149
313,197
Notional tax on profit before taxation, calculated at 16.5%
Tax effect of non-deductible expenses
Tax effect of non-taxable income
Tax effect of current year's tax losses not recognised
Tax effect of prior years' unrecognised tax losses utilised this year
Tax effect of temporary differences on fixed assets Under/(over)-provision in respect of prior years
Actual tax expense
201,985
51,678
4,337
6,798
(32,556)
(40,968)
2,141
1,116
(218)
(78)
5,314
1,435
11,735
(221)
192,738
19,760
Hong Kong Ferry (Holdings) Company Limited Annual Report 2014
69
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